Vedanta Chief Anil Agarwal Meets Odisha CM Mohan Majhi, Says Bauxite Mining Hurdles To Be Settled by November

Bhubaneswar: Vedanta Resources chairman Anil Agarwal on Saturday met Odisha Chief Minister Mohan Charan Majhi and discussed the progress of the group's proposed Rs 1 lakh crore investment programme in the state, including a new aluminium smelter and alumina refinery, as well as an expansion of its existing smelter at Jharsuguda.

The meeting at Lok Seva Bhawan, the state secretariat, assumes significance as Vedanta seeks to expand its aluminium footprint in Odisha and address the raw-material requirements of its existing operations.

According to the Chief Minister's Office, the discussions focused on accelerating execution milestones and strengthening industry-government coordination for the proposed investments.

The investment programme includes a 3 million tonnes per annum (MTPA) aluminium smelter in Dhenkanal and a 6 MTPA alumina refinery in Rayagada, according to the details shared by the state government.

The proposed Dhenkanal smelter will also supply hot metal to Vedanta's downstream aluminium parks in Odisha, with the company seeking to increase value addition within the state.

The company has said that the proposed investments, along with its existing operations, would take its cumulative aluminium production capacity to around 6 MTPA.

During the meeting, Mr Agarwal also proposed a 1 MTPA brownfield expansion of the aluminium smelter at Jharsuguda, further increasing the scale of Vedanta's proposed investment in Odisha.

Chief Minister Majhi said the state government was focused on attracting investments from across India and abroad, particularly those capable of generating employment and promoting local economic development.

“Considering the huge potential of these projects in job creation and local development, the state government will provide all possible support to these investments in aluminium,” the Chief Minister said.

Later in a press conference, Mr Agarwal also indicated that the long-pending issues surrounding Vedanta's proposed bauxite mine in Kalahandi and Rayagada districts could be resolved by November.

“Trust is a major factor. I have full trust in the present state government. By November everything will be settled. I do not see any resistance from anywhere. I have been in Odisha in my youthhood and people have showered their love on me,” Mr Agarwal said.

His comments come at a time when the proposed bauxite mining project has moved forward at the regulatory level.

Vedanta's proposed mine, intended to supply bauxite to its alumina refinery at Lanjigarh in Kalahandi district, has estimated high-grade bauxite reserves of 311 million tonnes. The proposed mining area covers 1,549 hectares, including the diversion of 709.72 hectares of forest land, according to the proceedings of the Union environment ministry's Expert Appraisal Committee (EAC) on non-coal mining.

The EAC, at its meeting on May 15, recommended the project for grant of environmental clearance, according to the minutes of the meeting.

The proposed mine is located across Thuamul Rampur tehsil in Kalahandi and Kashipur tehsil in Rayagada, covering 18 villages.

The project is important to Vedanta's integrated aluminium operations in Odisha, where the company already operates an alumina refinery at Lanjigarh and an aluminium smelter at Jharsuguda.

Vedanta entered Odisha's aluminium sector more than two decades ago, partly driven by the state's bauxite resources. However, the company's efforts to secure captive bauxite for its Lanjigarh refinery have faced prolonged regulatory and community-related challenges.

The proposed mining project has also been the subject of environmental and local community concerns, making the next stages of statutory approvals and implementation significant for both the company and the state government.